If the marginal private cost of a good is greater than its marginal social cost, then the good is said to have _____.

Question

Quizplus · Accepted Answer

When the marginal private cost of a good is greater than its marginal social cost, it indicates that there are external benefits to society from the production or consumption of the good that are not captured by the private cost. This is characteristic of a positive externality.

If the Marginal Private Cost of a Good Is Greater